0:03 AM, 19th March 2024, About 9 months ago 19
Text Size
Landlords and letting agents in England have been hit with a significant rise in fines for failing to comply with Right to Rent regulations.
According to government figures, penalties jumped by a staggering 405% last year – hitting £151,480 compared to just £29,960 the previous year.
The number of fines issued also increased dramatically, rising from 32 in 2022 to 155 in 2023.
The Right to Rent scheme requires landlords to verify the immigration status of all adult tenants so they don’t rent illegally. They must also keep accurate records to avoid a hefty fine.
The chief executive of Credas Technologies, Tim Barnett, said: “Landlords and letting agents are facing increased legislation and compliance requirements, and without the support of technology, they are vulnerable to heavy fines and even prison.
“It’s more important than ever that landlords and letting agents conduct these checks and keep accurate records for a year after the tenancy agreement ends, as they could face an unlimited fine and up to five years in prison if they are found to have knowingly rented to someone who didn’t have the right to live in England.”
He added: “Landlords and letting agents also need to be able to demonstrate a fair tenant selection process to avoid claims of unlawful discrimination in respect of any of the protected characteristics under the Equality Act 2010.
“They will need to demonstrate, with evidence, that they have a carefully considered a fair selection process that has been followed stringently.”
Credas is a certified Identity Service Provider and can perform ID checks in real-time using facial recognition.
The pressure on landlords intensified further in February with a big hike in penalties – first-time landlord offenders now face fines of up to £5,000 per lodger and £10,000 per occupier.
That’s a steep rise from the previous £80 and £1,000 respectively.
Repeat offenders face even steeper penalties, with fines reaching £10,000 and £20,000 per lodger and occupier.
These stricter measures are part of the Home Office’s wider crackdown on illegal immigration.
Landlords and agents must also ensure fair tenant selection practices to avoid accusations of discrimination.
The Equality Act 2010 protects individuals from discrimination based on characteristics like race, nationality and gender.
Landlords need to demonstrate a fair and objective selection process.
The Home Office also updated its Right to Rent guidance in October 2022 so landlords can verify IDs either manually, remotely via a certified IDSP, or through the Home Office Online checking service.
Video calls for verifying British IDs are no longer accepted.
Credas also offers these tips for landlords and agents to prepare for stricter tenant application processes:
Morag
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up13:49 PM, 19th March 2024, About 9 months ago
At least this is one outrageous legislative lunacy that the Scottish Government haven't seen fit to introduce here. We've got enough to contend with.
Tina Coates
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up14:00 PM, 19th March 2024, About 9 months ago
Landlords are border control because the Government are so useless at it.
TJP
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up14:41 PM, 19th March 2024, About 9 months ago
Who pays me to be a Home Office bureaucrat? How I hope Michael Gove loses his seat at the next election.
Cider Drinker
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up15:19 PM, 19th March 2024, About 9 months ago
Reply to the comment left by TJP at 19/03/2024 - 14:41I’ll be staying up to watch the election results and hoping for some high profile sour faces.
As for Right to Rent, clearly the government wants the illegal migrants sleeping rough (or in Scotland). Controlling who comes in to the country isn’t in the landlords’ skill set. I certainly don’t ask my tenants for evidence of a right to rent when I’ve known their families since childhood. Of course, I’d do the checks for anyone I didn’t know because it’s the law, as daft as it is.
Fed-up Landlord
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up16:44 PM, 19th March 2024, About 9 months ago
How exactly are we supposed to verify the immigration status of someone? We don't have access to any government database that could provide the answer.
Clint
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up18:16 PM, 19th March 2024, About 9 months ago
Reply to the comment left by Fed-up Landlord at 19/03/2024 - 16:44
Fortunately, you ask the prospective tenant for a sharing code which after they give it to you, you can go online and check their immigration status. You will also need their name and date of birth.
Cider Drinker
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up19:51 PM, 19th March 2024, About 9 months ago
Reply to the comment left by Fed-up Landlord at 19/03/2024 - 16:44
https://www.gov.uk/check-tenant-right-to-rent-documents/how-to-check
Tony Phillips
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up2:09 AM, 20th March 2024, About 9 months ago
In 10 hours I get shut of a family of five freeloading tenents. It has taken me exactly one year to the day!! And I an over £10k out of pockect
I only have one rental...my pension if you like. I have seen draconion rules and regulatiins introduced in my 20 years of being a landlord.
My next tennents with be professionals and probably white. And you know what...I don't give a **** what the govt or local council say. Unless of course tgey want to reimburse me ten grand and pay another five grand onto to refurbish my beautiful property.
I am SICK of hearing about Unscrupulous Rogue Landlords....S21 for me was NOT a no fault eviction....it was tge quickest way and STILL took a year.
I had unscrupulous rogue tenents a famiky of 5 who are parasites!
No
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up4:12 AM, 20th March 2024, About 9 months ago
I'm a landlord not a custom & immigration officer.
So now they want me to do the job that they can't do & get paid for !!
Laughable to say the least.
It's just unbelievable.
Another reason I am selling up.
Had enough of all this red tape. I will just sell up & sit on a sun lounger on a beach ⛱️
I have been a landlord for over 30 years & have put up with pay direct to tenant under the labour government which failed & cost landlords money then universal credit pay direct to tenant under the Conservative government which failed. More regulation & costs. It just goes on & on.
Anybody want to buy 28 houses as they are going up for sale.
I feel sorry for my tenants however the government not mortgage rates have pushed me into this decision.
They haven't got a clue how bigger hole they are digging with all this legislation.
TJP
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up12:16 PM, 20th March 2024, About 9 months ago
Reply to the comment left by No at 20/03/2024 - 04:12
Have to agree. I'll also be leaving as soon as I can, and I have some lovely tenants. 5 flats, 4 houses. I'm currently over 2 years trying to get my freeloader out! The courts are corrupt. I had a judge INVENT a deposit for my tenant. Tenancy agreements aren't worth the paper they're written on. But it will take the absolute catastrophe before our overlords see sense.